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Chronicles

The story behind the story

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The UK CMA pushes back its July 18 deadline to block Microsoft's Activision Blizzard acquisition to August 29, which could mean the deal closes within six weeks

Tim Bradshaw / Financial Times :

Financial Times Tim Bradshaw

Context & Ripple Effects

Microsoft's $69B bid for Activision Blizzard has been in UK antitrust purview since the CMA opened its investigation into the deal in mid-2022, which quickly escalated into an in-depth review with a September 2022 deadline for Microsoft to offer remedies. After the CMA moved to block the deal, Microsoft took the fight to the Competition Appeal Tribunal.

Today's extension moves the CMA's blocking deadline from July 18 to August 29 — and with the tribunal having paused Microsoft's appeal hearing for two months, the regulator's own timetable is suddenly the critical path. If no block lands by late August, the merger can complete within roughly six weeks.

First-order effects

  • Microsoft gains a concrete window to close the Activision Blizzard acquisition by late August without further UK litigation, while Activision Blizzard remains in limbo under a deal whose completion date now hinges on a single regulatory deadline.

Second-order effects

  • With the tribunal hearing paused, the CMA's remedy consultation becomes the decisive battleground: any reversal of the block would have to come through the regulator's own process rather than the courts, concentrating negotiating leverage back with the CMA.

Third-order effects

  • A year-plus review cycle spanning investigation, block, appeal, pause, and deadline extensions points to a structural reality for large cross-border tech mergers: national regulators' procedural timelines, not the parties' announced closing dates, effectively set when deals complete.

The trend: Major tech acquisitions are increasingly decided by the pace of regulator reconsiderations and remedy negotiations rather than by headline court rulings, stretching deal timelines well beyond what acquirers originally commit to.

Discussion

  • Gameranx Dennis Patrick on x
    Competition Appeal Tribunal Conference For CMA Has Been Scheduled
  • @tomwarren Tom Warren on x
    The Competition Appeal Tribunal has scheduled a Microsoft / CMA case management conference for July 17th “to consider the application made jointly by all parties to adjourn these proceedings pending further discussions between the CMA and Microsoft.” All eyes on Monday 👀 [image]
  • @fosspatents Florian Mueller on x
    There's less anxiety now in the gamer community, but tremendous impatience about the UK situation. You will all remember that after the CMA's April 26 decision, most of the “experts” and clearly the stock market thought the deal was dead. As did Sony-aligned deal critics: 🧵1/2
  • @jaywood2010 @jaywood2010 on x
    The CMA has now issued an extension for a Microsoft Activision investigation to August 29th due to “special reasons.” The CMA aims to resolve “in advance of this date.” FYI: UK is open for business once again as the two work together rapidly 💪 Microsoft might possibly still... [i…
  • @dmoptions DM Options on x
    People were laughing at Microsoft when they spazzed after the CMA news on April 26th But they literally won everything after that point And bamboozled the FTC by luring them into federal court with a carefully planned trap before destroying them Don't mess with Satya
  • @fosspatents Florian Mueller on x
    FTC: We appeal. Microsoft: We oppose. CMA: We're playing it smart, preserving our authority while keeping UK open for business. Gamers: What day do we get ABK games on Game Pass?
  • @fosspatents Florian Mueller on x
    I see that some UK gamers are still concerned about the @CMAgovUK potentially requiring Microsoft and ABK to do something that would adversely impact the availability of games and/or services in the UK. Don't worry at this point. I trust the CMA does not want to restrict choice.
  • @gameoverthirty @gameoverthirty on x
    There are options in the UK that are not just closing over the CMA. #Microsoft may get a waiver (of sorts) if they hold ABK separate (that was the plan anyway). We need to see what happens Monday / Tuesday to gain an understanding of what's going on. https://finance.yahoo.com/...
  • @benjisales Benji-Sales on x
    With the 9th Circuit officially denying the FTC as well, the long battle of Microsoft acquiring Activision Blizzard is essentially at an end Last step is CMA, but that should be resolved. Microsoft will likely own Activision Blizzard in the next couple days What a wild ride [imag…
  • @tomwarren Tom Warren on x
    The FT is reporting that Microsoft and Activision could extend their merger agreement. They don't have to have a formal agreement in place, though. I still firmly believe Microsoft won't close over the UK, so we might be looking at a small delay to closing https://www.ft.com/... …
  • r/pcgaming r on reddit
    UK regulators open door to quick Microsoft-Activision deal
  • r/xboxone r on reddit
    UK regulators open door to quick Microsoft-Activision deal
  • r/XboxSeriesX r on reddit
    UK regulators open door to quick Microsoft-Activision deal